Friday 21 Jun 2024
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KUALA LUMPUR (March 31): Tan Ah Tek has emerged as a substantial shareholder of plastic products manufacturer SCGM Bhd with an 8.05% stake, after acquiring 7.75 million shares off-market.

The shares were bought on March 28, raising Tan’s stake to 15.5 million shares.

Meanwhile, SCGM executive chairman Datuk Seri Lee Hock Seng had disposed of 5.82 million shares on March 28 and 29 off-market, leaving him with 12 million shares or 6.23% stake.

Hock Seng also has an indirect stake of 136,800 shares or 0.071% in the company.

The co-founder has been paring his deemed interest in the company, which stood at 25.23% as at July 29, 2022, according to its latest annual report.

Similarly, Hock Seng’s brothers — managing director Datuk Seri Lee Hock Chai and former executive director Lee Hock Meng — have also ceased to be substantial shareholders in the company. Hock Meng retired on Thursday (March 30).

Prior to this, another individual Chin Kok Tian emerged as a substantial shareholder on Feb 2, 2023, also with an 8.05% stake.

The latest development means that both Tan and Chin are the largest shareholders in the company, ahead of the Lee family.

As at end-January, SCGM had cash and bank balances of RM108.49 million. Net asset per share stood at 61.54 sen compared with its last close of 59 sen.

For the nine-month period ended Jan 31, 2023 (9MFY2023), the group booked record net profit of RM313.12 million from RM22.4 million in the same period last year, due to gain on disposal following the sale of its core business Lee Soon Seng Plastic Industries Sdn Bhd (LSSPI) to Japan’s Mitsui & Co Ltd and FP Corporation (FPCO) for approximately RM556.99 million cash.

The group subsequently distributed dividends and capital repayment totalling RM2.21 sen per share.

SCGM, which was listed in 2008, has been consistently profitable save for a loss-making year in the financial year ended April 30, 2019 (FY2019) when the group wrote down inventory and impaired trade receivables.

The group said it is “taking the necessary process of identifying and acquiring new suitable businesses/assets”.

“The company has approximately five months to submit its proposal to Bursa Securities for approval. Any progress in this regard shall be announced to Bursa Securities in due course,” it said in its filing on March 29.

At its last close of 59 sen, SCGM had a market capitalisation of RM113.27 million.

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